I still remember the surprise when I got my first salary raise and it bumped me from the 20% bracket to the 27.5% bracket and realized I was making less money.
As far as I remember (I used to be Brazilian) the tax is applied to the difference, so 20% is discounted from the maximum for the 20% bracket, and 27.5% (and, boy, I wish I only paid 27.5% tax here) is applied to the difference.
Or am I misremembering? Maybe it's taken from the payslip, but returned with the yearly adjustment (which could make sense)
Brazilian here: you are probably misremembering it, or there was some other kind of deduction happening in your payslip.
And I say this with confidence, because Brazilian tax brackets work progressively, and have worked like that since always, just like every other sane country out there.
_trackno5|2 years ago
I still remember the surprise when I got my first salary raise and it bumped me from the 20% bracket to the 27.5% bracket and realized I was making less money.
It took me another raise to break even.
rbanffy|2 years ago
Or am I misremembering? Maybe it's taken from the payslip, but returned with the yearly adjustment (which could make sense)
fmobus|2 years ago
And I say this with confidence, because Brazilian tax brackets work progressively, and have worked like that since always, just like every other sane country out there.
rpgbr|2 years ago